New name, new strategies for FloorExpo

[Austin, Texas] The FEI Group, formerly known as FloorExpo, kicked off its convention here, Oct. 6—7, with a formal announcement and explanation of its new name. With the creation of KBx, a division of cabinet dealers/distributors, the group's leadership wanted a name that wasn't solely focused on floors.

Including FloorExpo (Multi-Family Solutions and Home Solutions) and now KBx, the FEI Group is ready to serve more needs of its customer base in the multi-family and home construction markets. "FEI wants to be more important to builders and will definitely expand into other categories, but we are determined to add one at a time,bCrLf said David Gheesling, CEO, FEI. "It takes time to grow wisely. We want to help members know where the market is going and give them the tools to succeed.bCrLf

Members tout networking
Ninety-two percent of members attended the convention, taking part in breakout sessions that looked at the "new normalbCrLf in terms of customers, suppliers, competitors and marketing. Members participated in the lively give and take of the sessions and many said the best part of convention was the chance to network. "The most important benefit is the sharing of ideas,bCrLf said Joseph Hamad, executive vice president of FloorPro USA in Harrisburg, Pa. A member for five years, Hamad added, "The group buying power is a benefit. And, with companies spread across the country, we can work together to get the whole business from some national customers.bCrLf

Dan Davis of One Source Flooring Services, Murray, Utah, said that after doing business for five years solo and five years as an FEI member, it is better being a part of FEI. "It gives us access to high-profile products and partnerships we couldn't get without the membership,bCrLf he said.

"To have honest and frank conversations with other businesses is great,bCrLf said Chris Holtz, who was attending his first FEI convention. A KBx member, Holtz' business, Countertops and Cabinetry by Design, Mason, Ohio, also sells tile and hardwood.

FEI direction is upEmphasizing that there are business opportunities despite the lingering recession, Jay Smith, president of FEI, stressed positive signs, and advised members to adopt "upbCrLf as their new motto. "New [home] starts, and new [home] sales are up,bCrLf he said. "Affordability, prices and pent-up demand are up. Manufacturing, consumer spending and the stock market are all up. And media coverage is up — changing to a more positive message,bCrLf he reported.

Finding the silver lining, Smith noted that a large number of foreclosures are still pending. "But those homes have to be clean to resell. They will need paint, cabinets and floors,bCrLf he emphasized.
Reporting on the multi-family market, Graham Howerton, vice president of FEI, cautioned that as the unemployment rate rises, so does the vacancy rate in apartment complexes, resulting in a sharp drop in new building. "But opportunity exists in pent-up demand,bCrLf Howerton pointed out. "At some point, units have to be renovated.bCrLf

Smith discussed the builder market, saying, "Home prices are now at 2003 levels. The Fix Housing First program is having some effect as housing starts are up since the first quarter of 2009. The Homebuyer Tax Credit is working. The big question, Is this the bottom?' should now be What does the recovery look like?'bCrLf

A panel of executives from major vendors, including: Tom Lape, Mohawk; Frank Ready, Armstrong World Industries; Ralph Boe, Beaulieu; Kim Holm, Mannington; and Shannon Watson, Legacy Cabinets, answered questions about the emerging recovery. There was consensus that recovery will be slower than any previous recession and that by 2014, new housing would be at about 75 percent of its peak.